New payment checks at online checkouts have been rolled out by the building society to better assist those making purchases online. Nationwide data suggests the Strong Customer Authentication (SCA) is reportedly blocking 2,000 transactions a month which are at risk of being fraudulent. The building society said it’s “important” people keep the contact details held by their bank or building society, including their mobile phone number, up-to-date.
It’s even more important if people don’t use the mobile banking app, or there could be issues when they go to check out when shopping online.
Nationwide offers several options when it comes to the SCA check, including:
Authentication using the mobile banking app
One-time passcode via text
One-time passcode using the card reader
One-time passcode via a landline
One-time passcode via email.
Research by Nationwide has found that 68 percent of Britons are happier to wait slightly longer for shopping transactions to go through if they are safer as a result.
Strong Customer Authentication (SCA) was originally introduced by debit and credit card providers in September 2019.
However, it was only rolled out across a small proportion of payments and was widely introduced across all online purchases by March 14.
Through the checking system, shoppers will need to confirm their identity when making an online purchase by replying to a push notification on their mobile device.
Overall, Nationwide’s research shows that 28 percent of all purchases are now made online which is a rise of 52 percent compared to five years ago.
Matt Cox, the chief product owner for Digital Payments at Nationwide Building Society, outlined how the recently introduced checks better protect customers from scams.
Mr Cox said: “Many people prefer the convenience of online shopping and, while merchants strive to make the checkout experience as quick and easy as possible, we generally accept that a small delay is worth it when it comes to our security and personal details.
“The introduction of new Strong Customer Authentication measures adds just a few extra seconds to the check-out process for higher risk transactions.
“But they are vital for retailers and banks and building societies to check if the card owner is making the purchase.”
Furthermore, Mr Cox highlighted the rate to which this latest safeguard has been successful in mitigating the damage caused by fraudsters. He explained: “It’s been just two months since the new regulations were fully rolled out, but already we are seeing around 2,000 fewer cases a month of online card fraud and this is likely being replicated across the industry.
“While this is good news, history has shown us that when we interrupt fraudsters, they will often look for other, easier ways to trick people out of their hard-earned money. This means we must always remain vigilant as we keep our members’ money safe.”
The majority of online scams occur using compromised data, which is received by data leaks, according to the building society. Many consumers incorrectly assume that they are in danger of scammers stealing their physical bank card and using this to shop online. Despite this concern, 59 percent of those polled admitted they were scared of their card being stolen and used online. However, it appears similar payment check initiatives used by Nationwide could help ease concerns going forward.